Energy XXI to buy EPL in $2.3B deal

|About: Energy XXI Ltd. (EXXIQ)|By:, SA News Editor

Energy XXI (EXXI) has agreed to acquire EPL Oil & Gas (EPL) for $2.3B including debt, with the payment to be made in cash and stock.

The offer of $39 a share represents a 34% premium over EPS's closing price of $29.11 yesterday.

Following the deal, Energy XXI will become the largest public independent producer on the Gulf of Mexico shelf, with output of approximately 65,000 barrels of oil equivalent (BOE) per day, 70% of which would be oil.

The combined firm's enterprise value would be $6B.

EPL's shares are +24%. (PR)